Indian paints major Asian Paints has clocked 53 per cent rise in its consolidated net profit at Rs 1,232 crore for the second quarter (Q2) ended September on sourcing efficiencies and moderating raw material prices. According to PTI, Asian Paints during July-September period a year ago had reported a net profit of Rs 803 crore. However, the company's revenue was almost flat at Rs 8,451 crore in the September quarter. It stood at Rs 8,430 crore in the year-ago period.
In an earning statement by Asian Paints, the company has an "improvement in gross margins by about 770 basis points in Q2 FY24 as compared to Q2 FY23."
Amit Syngle, managing director and CEO at Asian Paints, said, "Operational, formulation and sourcing efficiencies coupled with moderating raw material prices benefitted our margins in Q2 and resulted in strong profit growth for the quarter."
The company's total expense was down 6.13 per cent to Rs 7,021 crore in Q2FY23-24 as against Rs 7,480 crore in the corresponding period a year ago, while the total income was at Rs 8,643 crore, up 1.06 per cent during Q3.
Asian Paints' domestic coatings business, decorative and industrial combined, logged a subdued 1.1 per cent revenue growth in the quarter, said Syngle. "The domestic decorative paint business for Q2 was muted, registering a flat value sale with a 6 per cent volume growth. The erratic monsoon impacted market sentiment potentially leading to deferment of sales to October given the late Diwali this year," he said.
While growth in the automotive and refinish business was decent, general industrial coatings business sustained its double-digit growth trajectory, he said.
The comoany's sales from global business dropped 3.9 per cent to Rs 775 crore from Rs 806 crore on the back of macro-economic and forex challenges in markets of South Asia and Egypt. In the home decor business, sales dipped in the bath fittings business and kitchen business.
"Looking towards the second half of the year, we remain optimistic about improved demand conditions well supported by the longer festive season and the overall buoyant domestic economic growth," Syngle added.
Asian Paints has also said its board has approved payment of interim dividend of Rs 5.15 per equity share of face value of Re 1 each for financial year ending March 31, 2024. The board has also approved the appointment of Soumitra Bhattacharya as an additional and independent director of the company for a period of five years with effect from October 26, 2023, the company informed in a separate exchange filing.